Things You Should Know About Affiliate Ad Payments

Affiliate programs are also sometimes referred to as associate programs. When you enter into an affiliation you are essentially partnering with another company to allow that company (or affiliate) to advertise on your website.

Generally, you get to decide what ads you want to use and where you want them on your site. The right affiliate partnerships create a win-win situation for you and the affiliate company but using the wrong ads can hurt your website.

Here are five important things you should know about affiliate program payments:

  1. Commission Based Income: Affiliate programs pay you a commission for sales that result through linked ads on your website to the affiliate, or in some cases, you may be paid each time someone clicks on the affiliate ad. Either way, you must earn the income by performing for the affiliate company in a way that they also benefit.
  2. Affiliate Income is Taxable Income: To get paid, you must have a federal tax ID number or social security number. Affiliate programs are required by law to report your ad income to the IRS - and they do.
  3. Payments May Be Sporadic: Most affiliate programs only pay you when you have earned a minimum amount, or on a periodic basis (usually quarterly), or whichever comes first. With most affiliate programs, if you opt for direct deposit instead of a paper check you will be paid faster.
  4. Do Not Get Taken: Not all affiliate companies are legitimate. Be sure to check out each company thoroughly or you could end up making money for someone else and getting nothing in return.
  5. Be Proactive If You Do Not Get Paid: If you are due a payment but did not receive compensation, immediately contact the affiliate company.

Affiliate programs can help you earn supplemental income, and eventually may even grow into something semi-lucrative. But the days of making big bucks overnight by simply setting up an affiliate storefront are pretty much a thing of the past. In fact, most affiliate programs now forbid you from setting up storefront ads and online catalogs and have become more selective about the websites they will partner with.

If you are willing to spend the necessary time building a quality blog or website, and partner with the right companies, you will make at least some money from affiliate ads. But it is still up to you - not the affiliate to make the money. The more you are time and energy you are willing to invest in making affiliate programs work for you, the more likely you are to be successful.